The ratings of Milli Re remain underpinned by its excellent market
standing in the Turkish insurance and reinsurance markets and its
acceptable risk-adjusted capitalisation.

These positives are somewhat tempered by the company's modest
technical profitability in its non-life portfolio and, as a consequence,
dependence on investment income.

Milli Re boasts a sound market position in Turkey as the sole
domestic reinsurer with a 25% market share. In addition, the company
further reinforced its domestic franchise through the purchase of an
additional 37% stake in Anadolu, one of the two leading Turkish direct
insurers in 2010.

Although Milli Re's risk-adjusted capitalisation weakened
following the purchase of Anadolu shares in September 2010, AM Best
considers that its current and prospective risk adjusted capitalisation
remains stable and supportive of the company's ratings.

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